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20April2020

Regulations on Covid-19 and Some Laws Within the Scope of Omnibus Law No. 7244

Regulations on Covid-19 and Some Laws Within the Scope of Omnibus Law No. 7244

Law on the Amendment of Some Laws with the Law on Reducing the Effects of New Coronavirus (Covid-19) Epidemic on Economic and Social Life, which includes articles on reducing the effects of Covid-19 epidemic to economic and social life and amendments to be made in some laws have entered into force, having been published in the Official Gazette dated 17.04.2020 and numbered 31102.

Law No. 7244 includes postponing, not taking or restructuring receivables, extending certain periods regulated by law, innovations brought to business life by the Labour Law and other related regulations and many more.

You can find the regulations in the law below:

ARTICLE 1 - Postponement, not taking or restructuring of some receivables

Due to force major caused by the Covid-19 outbreak, it has been ensured that;

  • The fees to be paid in accordance with the contract regarding the Treasury immovables can be postponed for 3 months by the Ministry of Environment and Urbanization, without requiring an application;
  • Payments for natural and legal persons in the State forests regarding the permissions and the rental places made in the places subject to the National Parks Law are postponed for 3 months without the requirement of application;
  • Payments regarding promenades rented to natural and legal persons with permission in State forests and payments for rents made in places subject to the National Parks Law have been postponed for 3 months without requiring an application
  • Payments regarding the immovable properties of municipalities, special provincial administrations and affiliated institutions can be postponed by the council in the municipal and special provincial administrations without requiring an application; in affiliated institutions, it can be postponed for 3 months by the authorized decision body; in addition, rental fees of the business organizations cannot be collected for the period where their operations are stopped or they cannot operate;
  • Payment terms of income tax withholding declaration and all social insurance premium payments for metropolitan municipalities, municipalities and affiliates will be postponed for 3 months;
  • Water bill debts, annual advertising and advertising taxes and annual environmental cleaning taxes of workplaces the activities of which are stopped or could not operate can be postponed for 3 months;
  • Municipalities can pay income support for 3 months with the decision of the parliament for natural and legal persons working by obtaining permission or license or renting a line limited to the uninterrupted execution of the public transport service, and that the license, permit, line rental debts corresponding to the specified period can be postponed for 3 months without interest;
  • Loan debts within the scope of Higher Education Loan and Dormitory Services Law No. 351 will be postponed for 3 months regardless of the application requirement.
  • Postponement of the 2020 debt installment payment of the credit debts of the agricultural sales cooperatives from the Support and Price Stability Fund (DFIF) to 2021, the installment amounts to be postponed for one year without interest in the subsequent years, including 2021, the installment amounts to be postponed for one year without interest;
  • The annual fee to be paid by the Travel Agencies Association member travel agencies not be taken in 2020;
  • The receivables of TEDAŞ (Turkish Electricity Distribution Corporation) arise from electricity consumption, which transferred to TEDAŞ during privatization to be restructured.

The relevant institution (Ministry / City Council) is authorized to extend these 3-month periods and at the end of the deferred period, these receivables will be collected in monthly equal installments without any delay increase or interest.

ARTICLE 2 - Extension of time, postponement of meeting and working remotely

Due to force major caused by the Covid-19 outbreak, it has been decided that;

  • The validity period of the licenses given under the Law No. 5300 which will expire in 2020, will be extended by 1 year,
  • Seaworthiness certificates issued to merchant ships under Law No. 4922, with the date 11.03.2020 and will expire on 31.7.2020 to be extended until 01.08.2020,
  • Audits to be made within the scope of Law No. 4922 were postponed to 01.08.2020,
  • Notifications and declarations to be submitted by associations and association general assembly meetings to be postponed until 31.07.2020 and postponed general assembly meetings to be held within 30 days from the date of postponement,
  • General assembly meetings under the Cooperatives Law No. 1163 to be postponed until 31.07.2020 and postponed general assembly meetings to be held within 3 months from the date of postponement
  • General assembly meetings within the scope of Law No. 5996 and Law No. 5200 to be postponed until 31.07.2020 and postponed general assembly meetings to be held within 3 months from the date of postponement,
  • Pursuant to Article 61 of Law No. 5174, the General Assembly of the Union dated May 2020 to be held combined with the General Assembly next year,
  • Within the scope of the Law No. 5746, the activities carried out in the R&D and design centers also to be carried out outside the R&D and design centers;
  • Within the scope of the Law No. 4691, the activities carried out within the boundaries of the Region, can be permitted by the Minister of Industry and Technology, to be also carried out outside the Region limited to 4 months from 11.03.2020,
  • Within the scope of Law No. 4688, determination of the number of members of trade unions and confederations and the determinations to be made in this context will be carried out on the basis of 15 July 2020 for 2020,
  • Processes of collective labour agreements, resolution of collective labour disputes and strike and lockout to be stopped for 3 months; in order not to cause loss of rights for the parties upon cessation, the deprivation of the deadlines in the Law not to be applied,
  • It has been regulated that the sale, renting, exchange, construction of land or floor in exchange and limited real rights facility operations for the immovable property of the Treasury and tenders for renting and granting permission to use the places under the terms and conditions of the State can be done electronically until 31.07.2020.

You may access further information on the associations regarding clause through our article.

ARTICLE 3 - With the amendment made in the paragraph 3 of the article 4 of the Travel Law No. 1618 the following provisions are included:

  • Operating permit certificate is given to legal entities exclusively for a business operation.
  • Providing permission from the Ministry, the operating permit certificate may be transferred to another legal entity regardless of the agency title.
  • Agency title in the transferred operating permit document title to lead to ambiguity shall not be made available for the use of any travel agency within ten years.
  • The legal entity that transfers the operating permit document will not be given an operating permit document again within three years.

ARTICLE 4 – With the additional Article 45 to the Law on Higher Education;

It is regulated that the debt coverage percentages of the medical faculties and dentistry faculties of state-owned universities and revolving fund management units of the institutes that provide healthcare services, funds can be transferred from the budget of the Ministry of Treasury and Finance to those who fall below the rate to be determined by the Ministry of Treasury and Finance.

ARTICLE 5 - With the provisional article 18 added to the Social Services Law No. 2828;

Due to the force major caused by the Covid-19 outbreak; for the services to be provided to the elderly and the disabled who need care services, the income criteria set out in additional articles 7 and 10 and the severe disability condition will not be sought for 3 months. The President is authorized to extend this period up to one year.

ARTICLE 6 - With the amendment made in the provisional article 23 of the Unemployment Law No. 4447;

Eligibility assessments are excluded from the 60-day period set for the conclusion of applications.

ARTICLE 7 - With the provisional article 24 added to the Law No. 4447;

Employees who are entitled to unpaid leave and who do not receive short employment allowance and employees who have been laid off after 15.03.2020 will be provided 39.24 Turkish lira cash fee support from the Fund for each day during the prohibition of termination determined under the provisional article 10 of the Labour Law No. 4857. Those who receive an old age pension or benefit from unemployment payments in accordance with other provisions of the Law are not included in this scope. You may access further information on the subject through our article.

ARTICLE 8 - With the provisional article 25 added to the Law No. 4447;

Applications will be accepted according to the employers' declaration without making an eligibility assessment for short employment applications. You can access further information on the subject through our article.

ARTICLE 9 - With the provisional article 10 added to the Labour Law numbered 4857;

The employment contract of any employee covered or not covered by the Labor Law shall not be terminated by the employer, except for the reasons set out in the "immoral, dishonourable or malicious conduct or other similar behaviour" in the second subsection of the first paragraph of Article 25 of the Labour Law for three months as of the date when this article enters into force. You can access further information on the subject through our article.

ARTICLE 10 - With the Additional Article 7 added to the Public Financial Management and Control Law No. 5018;

The methods for creating, recording, transmitting, maintaining and presenting the data, information and documents evaluated in the context of force majeure in case of natural disasters, epidemics and the information systems of the Ministry of Treasury and Finance are regulated to be determined by the Ministry of Treasury and Finance. The methods for creating, recording, transmitting, maintaining and presenting the data, information and documents evaluated in the context of force majeure in case of natural disasters, epidemics and the information systems of the Ministry of Treasury and Finance are regulated to be determined by the Ministry of Treasury and Finance. In addition, that no overdue interest, late fee and penal sanctions will not be imposed on those concerned is included in the second paragraph of the article.

ARTICLE 11 - With the provisional article 13 added to the Anti-Smuggling Law numbered 5607;

Within the scope of this law, the medical devices and materials listed in the text of the article directly related to the fight against infectious epidemic disease can be requested from the relevant authority after the necessary determination and evidence collection procedures are made by the confiscating administration or institution during the investigation or prosecution process.

ARTICLE 12 - With the provisional article 13 added to the Turkish Commercial Code numbered 6102; it is regulated that,

  • Except for companies where state, special provincial administration, municipality, village and other public entities have share; companies with share capitals can distribute only 25% of the net profit of 2019 until 30.09.2020, the general assembly cannot authorize the Board of Directors to distribute advance dividends;
  • If the General Assembly has decided to distribute advance dividends for the fiscal year 2019, but the shareholders have not yet been paid or partial payments have been made, the payments for the part exceeding 25% of the net profit of 2019 will be postponed until 31.09.2020.

ARTICLE 13 - With the additions to Article 18 of the Law on the Regulation of Retail Trade No. 6585,

Fines have been issued to those acting in violation of additional Article 1 with this law and the power of enforcement of administrative fines in this paragraph has been given to the Unfair Price Evaluation Board.

ARTICLE 14 - With the additional Article 1 added to the Law on the Regulation of Retail Trade numbered 6585;

In the article titled exorbitant price increase, stocking and Unfair Price Evaluation Board, it is regulated that,

  • No exorbitant increase can be applied in the sales price of a good or service by manufacturers, suppliers and retail business operations,
  • Manufacturers, suppliers and retail business operations will not engage in activities that prevent the consumer from accessing goods and activities that create disruption in the market, disrupt market balance and free competition,
  • Unfair Price Evaluation Board will be established in order to make regulations for this, to impose administrative fines by making audits and inspections when necessary, and to take all kinds of measures.

ARTICLE 15 - With the amendment made in the Article 6 of Law No. 6741;

Date of preparation of consolidated financial statements to ensure a healthy inspection of Turkey Wealth Fund, Turkey Wealth Fund Management Inc and other companies to be established by the Company and its sub-funds is set as August instead of June.

ARTICLE 16 - With the addition to the 5th paragraph of Article 8 of the Law No. 6741; it is regulated that,

  • Article 23, Article 27 and related legislation of Law No. 6362 will not be applied in transactions that will control Turkey Wealth Fund, the Company, sub-funds and companies established by the Company, and other companies together with third parties or on their own, and the parties to the transactions, their direct and indirect partners, subsidiaries, subsidiaries and companies that are controlled, limited to these transactions.
  • Article 202 of the Turkish Commercial Code for the unlawful use of Domination within the scope of the corporate group regulations, will not be applied to Turkey Wealth Fund, Company and sub-funds and other companies established by the Company, alone or together with third parties, directly or indirectly, for which companies have control over them and to the parties, their direct or indirect partners, affiliates and subsidiaries limited to transactions relating to the establishment of this domination.

You may access the text of the law on the link.

Should you require any additional information in regards, please contact your customer representative.

Written by Şeyma Nur Kaplan, Posted in Taxation Law, Code of Obligations, Labour Law, Turkish Commercial Code

  • Notification!

    Contents provided on this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents of this notification without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance is put in the preparation of this article, CottGroup® and member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject. Prior to taking any action in regards the above, please consult your client representative if you are a customer of CottGroup® or consult to a relevant party.

About The Author

Şeyma Nur Kaplan

Legal Consultant Attorney
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